RCB gets 15.7% revenue increase to Diageo India, yet the alcobev major reports 14% decline in profits

United Spirits Ltd., known as Diageo India, has reported a 14.02% drop in net consolidated profits to ₹417 crore in the quarter that ended June 30, 2025, from ₹485 crore during the same quarter a year ago. This is down 0.9% sequentially from March quarter’s ₹421 crore.

Reported EBITDA stood at ₹644 crore, down 9.7% year-on-year (YoY), while underlying EBITDA was ₹684 crore, a decline of 4.1% YoY.

This comes despite an uptick in segment revenues. Following the much-awaited Royal Challengers Bangalore win at the IPL 17, the company raked in a 15.7% hike in its revenues from sports from ₹413 crore to ₹478 crore this June quarter from last year.

“Net sales value (NSV) was at ₹3,021 crore, up 9.4% versus same period prior year. This was driven by the 8.4% growth in the standalone business and 15.7% reported growth of the sports business housed in the 100% subsidiary Royal Challengers Sports Pvt Ltd (RCSPL),” the company said in its consolidated results statement, that were released on Wednesday post market hours.

Beverage alcohol revenue rose 8.37% YoY to ₹2,549 crore from ₹2,352 crore during the same comparison period.

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Total income of the company rose marginally 1.49% YoY to ₹6,367 crore from ₹6,273 crore during the same period last year. Other income particularly rose two-fold to ₹72 crore from ₹35 crore last year.

In the June quarter, the Prestige & Above segment contributed 88.3% to net sales, marking a 0.5 percentage point increase from a year ago, with sales rising 9%. The Popular segment accounted for 9.8% of net sales, up 0.4 percentage points year-on-year, and recorded a 13.6% growth in sales.

Additionally, the drop in profits comes despite a 5.83% YoY drop in excise duty for the brand from ₹3,477 crore to ₹3,274 crore.

The decline in profits can be attributed to increased advertising expenses and the recent completion of its acquisition of Nao Spirits. Expenses rose 2.7% to ₹5,776 crore from ₹5,619 crore on the back of increased expenses on changes in inventories of finished goods and advertisements costs. Advertising costs rose 33.70% YoY to ₹238 crore from ₹175 crore.

“We delivered a resilient quarter with the Prestige & Above portfolio sustaining its growth momentum while cycling a high prior year base. The quarter also marked the completion of the Nao Spirits acquisition. Looking ahead, we remain focused on our circle of control to lead the next wave of category growth through sharper portfolio, tailored consumer engagement and revenue growth management,” said Praveen Someshwar, CEO & Managing Director, Diageo India, in a statement.

Shares of USL closed at ₹1,306.20, up 0.6% from the Tuesday’s close of ₹1,297.80 on the NSE on Wednesday. The stock has decline 19.64% since January, this year.